Partner of education group held for ‘using loan taken for schools on lavish lifestyle’

The agency claimed that loans given by the bank for schools of the Education Group were instead used for the ‘luxurious and high-flying’ lifestyle of Aranha. The ED also claimed that he had hosted several events with Bollywood celebrities, and funds were also diverted and paid to ‘politically exposed persons’.

In 2015, on the complaint of Cosmos Bank, an FIR was filed in Pune against Aranha and Vivek Aranha on charges including cheating and forgery, claiming that loans of Rs 20.44 crore taken from the bank were based on fabricated property documents mortgaged with the bank. The ED filed its complaint in 2021, based on the FIR against the Aranhas. It was alleged that seven loans of a total of Rs 46.50 crore were sanctioned to the Group in 2015 and 2016 for working capital and expenditure on the schools, but were not used for the purpose.

The agency also claimed that statements recorded reveal that the funds were shown to have been disbursed to vendors, but individuals were made to withdraw the funds and hand them over to the Aranhas. “It also surfaced during investigation that Vinay Aranha diverted funds and paid to politically exposed persons, rather than being utilised for enhancement of working capital,” the ED said in its remand application submitted before the court by Special Public Prosecutor Sunil Gonsalves. It further claimed that when questioned on Thursday, Aranha had given ‘evasive’ answers on the utilisation of Rs 17.66 crore.

“It has also been unearthed during the course of investigation that Vinay Aranha has siphoned off public money to the tune of crores of rupees for his personal enrichment and is leading a lavish lifestyle. ED investigation has revealed that he has been leading a luxurious and high-flying lifestyle. He has hosted several events involving Bollywood celebrities. He has recklessly spent funds which were meant for the educational purpose of his schools. He has also spent lavishly in purchase of several high-end luxury cars worth crores of rupees,” the ED said.

Lawyer Nilesh Ojha, representing Aranha, submitted that the Bombay High Court had given directions to the ED to give a 72-hour notice before arresting his client, but this was not done and hence the arrest was illegal.

The ED submitted that the High Court’s directions were in relation to a different complaint. Special Judge M G Deshpande said that in order to probe the allegations, Aranha’s custodial interrogation was necessary and held that the arrest was legal.